What Employers Need to Know Before the End of the Tax Year

As the year comes to a close, many employers are focused on wrapping up projects, planning for the holidays, and thinking about what the new year will bring. But before you mentally check out for the season, there’s one important thing you shouldn’t overlook: year-end responsibilities.

The end of the tax year is a critical time for businesses. Payroll, taxes, benefits, compliance, and insurance all come into play, and missing even a small detail can lead to headaches in the new year. The good news? With a little preparation and the right support, year-end doesn’t have to be stressful.

Below, we’ll walk through what employers need to know before the tax year ends—using clear, simple language and focusing on what actually matters.

Why Year-End Matters More Than You Think

Year-end isn’t just about closing the books. It’s a chance to make sure your business is compliant, your employees are taken care of, and your systems are set up for success in the year ahead.

Many problems employers face in January—tax penalties, payroll corrections, compliance issues, or insurance gaps—can often be traced back to something that was missed in December. Taking time now can save you time, money, and frustration later.

Payroll: Accuracy Is Everything

Payroll is one of the most important areas to review before year-end. Employees depend on accurate pay, and government agencies expect correct reporting.

Before the year wraps up, employers should make sure:

All employee wages are recorded correctly
Bonuses, commissions, and overtime are properly classified
Employee information (names, addresses, Social Security numbers) is up to date
Payroll records match your bookkeeping records

Year-end payroll errors can delay tax filings or result in incorrect W-2s, which often leads to employee frustration and extra work in January.

If payroll feels overwhelming or time-consuming, working with a professional payroll and tax administration provider can help ensure everything is accurate and on time—without adding stress to your plate.

Taxes: Know What’s Due and When

Tax obligations don’t stop just because the holidays arrive. Employers need to be aware of federal, state, and sometimes local tax responsibilities before the year ends.

Some common year-end tax considerations include:

Ensuring payroll taxes have been withheld and submitted correctly
Reviewing quarterly filings for accuracy
Preparing for W-2 and 1099 reporting
Making sure contractor payments are properly tracked

Missing deadlines or underpaying taxes can result in penalties and interest, which is why many businesses choose to bundle payroll and tax administration together. It creates fewer gaps and more peace of mind going into the new year.

HR and Compliance: Small Details, Big Impact

HR and compliance tasks often get pushed aside during busy seasons—but they matter year-round.

Before the end of the year, employers should review:

Employee classifications (W-2 vs. 1099)
Wage and hour compliance
Required workplace postings and policies
Employee handbooks and procedures

Employment laws change regularly, and what was compliant last year may not be compliant this year. A quick review now can help prevent issues down the road.

Businesses that use HR and compliance support benefit from staying aligned with regulations while also creating a better experience for employees.

Employee Benefits: Time for a Quick Check-In

Even if open enrollment has already ended, year-end is still a great time to review your employee benefits offering.

Ask yourself:

Are employees actually using the benefits we offer?
Are costs aligned with our budget?
Do our benefits help us attract and retain good employees?

Benefits don’t need to be complicated or expensive to be effective. Sometimes small adjustments—like reviewing plan options or contribution levels—can make a big difference.

Employers who regularly review their employee benefits are better positioned to keep employees happy and reduce turnover in the new year.

Bookkeeping: Clean Books = Clear Decisions

Year-end bookkeeping plays a major role in how smoothly your business transitions into the next year. Clean, accurate books help you understand how your business actually performed and allow your tax filings to move faster.

Before year-end, it’s important to:

Reconcile bank and credit card accounts
Review income and expense categories
Confirm payroll and tax records match your books
Identify any missing or miscategorized transactions

When bookkeeping is up to date, you start the new year with clarity—not confusion. Many businesses find that outsourcing bookkeeping allows them to focus on growth instead of paperwork.

Retirement Plans: Don’t Forget Long-Term Planning

Year-end is also a smart time to review retirement plans—for both employers and employees.

This could include:

Reviewing employer contributions
Confirming employee participation levels
Making sure plans are compliant with current regulations
Evaluating whether your current plan still fits your business

Offering retirement options can be a powerful tool for employee retention, especially when communicated clearly. Businesses that provide guidance through retirement management often see higher engagement and appreciation from their teams.

Insurance and Bonding: Are You Properly Covered?

As your business grows or changes, your insurance needs often change too. Year-end is a great time to review coverage and ensure there are no gaps heading into the new year.

Employers should review:

General liability and commercial insurance coverage
Bonding requirements for contracts or licenses
Policy limits and exclusions
Renewal dates and rate changes

A proactive review of commercial insurance and bonding can help prevent surprises and ensure your business is protected.

Workers’ Compensation and Risk Management

Workers’ compensation is more than just a requirement—it’s a key part of protecting your employees and managing risk.

Before year-end, consider:

Reviewing claims history
Ensuring job classifications are accurate
Identifying workplace safety improvements
Looking for ways to reduce risk and control costs

A strong approach to workers’ compensation and risk management helps keep employees safe while protecting your bottom line.

A Strong Finish Sets Up a Strong Start

The end of the tax year doesn’t have to feel overwhelming. When payroll, taxes, HR, benefits, bookkeeping, and insurance are aligned, businesses can close the year with confidence and step into the next one prepared.

At Go American Benefits, we work with employers to simplify these systems and bring everything together under one trusted partner. Whether you need support in one area or want a more complete solution, our services are designed to grow with your business.

If you’re unsure where to start, a year-end review is a great first step—and one that can pay off all year long.